Banking and auto stocks led a strong rebound for key benchmark indices during the latter part of the trading session. The intraday rebound in late trade materialised after benchmark indices hovered in negative zone from the beginning of the trading session until mid-afternoon trade. The 50-unit CNX Nifty provisionally settled above the psychological 8,000 mark. Earlier, the Nifty had fallen below that level after extending initial losses. The Nifty had regained the psychological 8,000 mark after registering modest gains yesterday, 15 June 2015. The barometer index, the S&P BSE Sensex, was provisionally up 115.96 points or 0.44% at 26,702.51. The market breadth indicating the overall health of the market was negative. In overseas markets, fears of a Greek default continued to spook European stocks today, 16 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 604.86 crore yesterday, 15 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 650.47 crore yesterday, 15 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower as investors grew increasingly worried about a lack of progress in negotiations between Greece and its creditors. Asian stocks edged lower as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data.
As per provisional figures, the S&P BSE Sensex was up 115.96 points or 0.44% at 26,702.51. The index jumped 144.80 points at the day's high of 26,731.35 at the fag end of the trading session, its highest level since 11 June 2015. The index fell 206.62 points at the day's low of 26,379.93 in mid-afternoon trade.
The 50-unit CNX Nifty was up 33.40 points or 0.42% at 8,047.30, as per provisional figures. The index hit a high of 8,061.85 in intraday trade, its highest level since 11 June 2015. The index hit a low of 7,952.35 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,336 shares fell and 1,285 shares rose. A total of 133 shares were unchanged.
The BSE Mid-Cap index was up 76.88 points or 0.76% at 10,197.68, outperforming the Sensex. The BSE Small-Cap index was up 36.50 points or 0.34% at 10,654.90, underperforming the Sensex.
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The total turnover on BSE amounted to Rs 2495 crore, higher than turnover of Rs 2353.06 crore registered during the previous trading session.
Auto stocks rose. Tata Motors (up 1.54%), Maruti Suzuki India (up 1.07%), TVS Motor Company (up 0.04%), Bajaj Auto (up 2.73%) and Hero MotoCorp (up 1.53%), Mahindra & Mahindra (M&M) (up 1.18%) and Eicher Motors (up 2.5%) rose. Ashok Leyland declined 0.84%.
Bank stocks edged higher in volatile trade. Among public sector banks, UCO Bank (up 0.91%), Syndicate Bank (up 2.18%), Punjab National Bank (up 1.65%), Corporation Bank (up 0.59%), Allahabad Bank (up 1.95%), Union Bank of India (up 3.55%), Canara Bank (up 3.02%), Bank of India (up 2.43%) and United Bank of India (up 2.02%) edged higher.
State Bank of India (SBI) rose 2.04%. As per reports, SBI's advance tax payment for the first installment of 15 June 2015 rose 4% at Rs 1290 crore.
Bank of Baroda fell 0.21% as the stock turned ex-dividend today, 16 June 2015, for dividend of Rs 3.20 per share for the year ended 31 March 2015.
Among private sector banks, Axis Bank (up 0.61%), ICICI Bank (up 1.24%), Federal Bank (up 1.85%), Yes Bank (up 1.43%), and IndusInd Bank (up 3.52%) edged higher.
HDFC Bank gained 0.46%. With regard to news item titled CSB Promoters in Talks with Banks to Sell Stake, HDFC Bank after market hours yesterday, 15 June 2015, said in a clarification to the news reports that it is not in talks with the entities mentioned in the news item for purchasing promoters' stakes. The bank continues its practices of fair and prompt disclosure of information in pursuance of the Listing Agreement with the stock exchanges, HDFC Bank said.
Meanwhile, HDFC Bank's advance tax payment for the first installment of 15 June 2015 rose 22% at Rs 1000 crore, according to reports.
Kotak Mahindra Bank rose 0.38% to Rs 1,294.60. The stock hit high of Rs 1,297 and low of Rs 1,263.75 in intraday trade. The Foreign Investment Promotion Board reportedly once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%. According to reports, the proposal for raising foreign investment limit in Kotak Mahindra Bank (KMBL) was put off by the Foreign Investment Promotion Board (FIPB) as comments from the Department of Financial Services (DFS) about the impact of the proposal on downstream investment by the bank in the insurance venture did not come. The Insurance Regulatory and Development Authority of India (IRDAI) was to give its comments to DFS, reports added.
Meanwhile, data released by the Ministry of Commerce & Industry today, 16 June 2015, showed that India's merchandise exports fell 20.19% to $22.35 billion in May 2015 over May 2014. Merchandise exports registered a fall of 17.21% to $44.40 billion during the two-month period April-May 2015 over the corresponding period in the previous year.
Imports fell 16.52% to $32.75 billion in May 2015 over May 2014. Oil imports fell 40.97% to $8.54 billion in May 2015 over May 2014. Non-oil imports fell 2.24% to $24.21 billion in May 2015 over May 2014. The trade deficit declined to $10.40 billion in May 2015 from $11.23 billion in May 2014.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 15 June 2015, that the Southwest Monsoon was active over Arunachal Pradesh, Gangetic West Bengal, Odisha, Konkan & Goa, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. The conditions are becoming favourable for further advance of southwest monsoon into some more parts of West Bengal and Odisha, remaining parts of Coastal Andhra Pradesh, Bay of Bengal and some parts of Jharkhand and Bihar during next 3-4 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 11% above the Long Period Average (LPA) until 14 June 2015. Region wise, the southwest monsoon was 20% above the LPA in East & Northeast India, 12% above the LPA in Central India, 1% above normal in South Peninsula and 6% below the LPA in Northwest India until 14 June 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European stocks edged lower today, 16 June 2015, as investors grew increasingly worried about a lack of progress in negotiations between Greece and its creditors. Key benchmark indices in UK, France and Germany were off 0.53% to 0.86%.
Greek Prime Minister Alexis Tsipras yesterday, 15 June 2015, expressed defiance over demands by his country's creditors, insisting lenders soften their calls for pension cuts. That followed a collapse of talks between the two sides over the weekend. Greek Finance Minister Yanis Varoufakis reportedly said that his country has no plans of presenting a new reform proposal at a closely watched Eurogroup meeting scheduled on Thursday, 18 June 2015, insisting the lenders take Greece's suggested reforms seriously.
Last week the International Monetary Fund pulled out of talks, citing a lack of progress. Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one.
European Central Bank President Mario Draghi yesterday, 15 June 2015, raised pressure on the Greek government to come to an agreement with its international creditors to unlock financing. While all actors will now need to go the extra mile, the ball lies squarely in the camp of the Greek government to take the necessary steps, Draghi was quoted as saying.
German consumer prices rose at their fastest rate in seven months in May, a sign that the European Central Bank's bond purchase program may be starting to have its desired effect. Consumer prices measured according to common European standards, or the HICP, increased 0.1% on the month and 0.7% on the year, the federal statistics office said today, 16 June 2015, confirming preliminary estimates. That was the largest annual increase since October 2014, when prices increased by the same rate.
German economic sentiment slumped to a seven-month low in June, a sign that the economic upswing in Europe's largest economy is losing momentum. The ZEW think tank said today, 16 June 2015, its indicator of economic expectations dropped for the third straight month to 31.5 in June, from 41.9 in May. That was the lowest level since November 2014, when the indicator stood at 11.5.
Asian stocks edged lower today, 16 June 2015, as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. Key benchmark indices in Singapore, Hong Kong, Taiwan, Japan, and South Korea shed by 0.5% to 1.1%. In Indonesia, the Jakarta Composite was up 0.72%.
China's Shanghai Composite plunged 3.47%. Mainland China share market declined for second straight day on Tuesday, 16 June 2015, after Beijing's latest ruling on margin financing and ahead of fresh wave of IPOs this week. Chinese regulators' tightened margin regulations for over-the-counter shares. China Securities Regulatory Commission said investors need to have a minimum daily balance of 500000 yuan ($80000) securities assets in the last 20 trading days to take margin loans. The securities regulator also said the size of margin finance balance at each broker may not exceed four times of their net capital.
The tightening adds stress to a market already facing liquidity pressure from a prospective wave of 25 initial public offerings this week, which is estimated to lock up 5.7 trillion yuan ($918 billion) of liquidity.
US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data. The losses followed a breakdown in talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled investors and raised fears of a default on Greece's debt and a possible exit from the currency bloc.
Among US macroeconomic data, US industrial production unexpectedly fell in May as manufacturing and mining activity remained weak, a sign that a strong dollar and spending cuts in the energy sector continued to constrain economic growth. Industrial output slipped 0.2% last month after declining 0.5% in April, In a separate report, the New York Fed said its Empire State general business conditions index dropped to a reading of minus 1.98 in June from 3.09 in May.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy begins today, 16 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
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